Daily Market Report – EUR/USD FOMC Meeting Minutes On Radar August 16, 2017

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EUR/USD Pressuring Critical Support

EUR/USD is trading in the red on the short term and is expected to extend the sell-off. Is focused on correction right now, but remains how long this will be because the FOMC Meeting Minutes could force the rate to turn to the upside again.

Technically is expected to decrease further also because the US dollar index continues to stay above a broken dynamic resistance and above the 93.81 broken static resistance. We may have a minor decrease on the USDX these days, could come down to retest the broken resistance levels before will climb much higher.

The USD stays higher even if the United States data have disappointed earlier, the Building Permits dropped from 1.28M to 1.22M, while the Housing Starts have disappointed as well, have dropped from 1.21M to 1.16M, even if the traders have expected an increase to 1.22M.

The FOMC Meeting Minutes could bring a high volatility tonight, so you should be careful not to suffer a heavy loss.

Price is pressuring the 1.1711 major static support (resistance turned into support) and could drop towards the median line (ml) of the minor ascending pitchfork. A breakdown below the static support looks imminent after the failure to retest the upper median line (uml) of the minor ascending pitchfork. We’ll see what impact the FOMC Minutes will have tonight, because a disappointment will boost the currency pair.

The next major downside target is at the median line (ML) of the major ascending pitchfork, only a valid breakdown below this obstacle will confirm a reversal.

EUR/JPY Major Drop Still On Cards

EUR/JPY reached new highs in the morning at 130.38 level, but the sellers are still in game and have forced it to decrease in the last few hours. You can see that was almost to reach the confluence between the median line (ml) of the black ascending pitchfork with the upper median line (uml) of the minor descending pitchfork. The failure signals an exhaustion and a bearish pressure, a downside movement is favored after the retest of the red uptrend line.

Looks like that the rate is developing a Head and Shoulders pattern, this will be confirmed only after a valid breakdown below the 38.2% retracement level.

GBP/JPY Further Drop Favored

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Price has come back to retest the uptrend line (red line) to confirm this resistance (support turned into resistance) and to validate a further drop in the upcoming weeks. GBP/JPY could climb even towards the upper median line (uml) of the minor descending pitchfork before will drop again. The next downside target will be at the WL1.

By Olimpiu Tuns

Market Analyst

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Source:: Daily Market Report – EUR/USD FOMC Meeting Minutes On Radar August 16, 2017

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